How DeFi Meets AI

Hello there!

I´m Marine, co-founder of MC² Finance.

Did you know most traders—despite all their tools—don’t actually know their true ROI? Even the largest exchanges miss the mark. After speaking with over 500 traders, we uncovered some key reasons why.

The Problem

Exchanges often focus on basic profit and loss numbers. But there’s more to the story:

1. Entry and exit timing: Imagine buying Bitcoin at $30,000, then selling half at $35,000 and the rest at $40,000. Most platforms only show an average price, but you miss the real picture of how well you timed those trades.

2. Static cost basis: If you reinvest profits into the same token, most systems won’t update your cost basis dynamically. For example, buying ETH at $1,800, selling at $2,000, and rebuying at $1,950 would confuse traditional calculations.

3. Margin trading confusion: Let’s say you borrow funds to amplify a trade. Your profits might look higher, but platforms rarely factor in the costs of borrowing—leaving you with inflated numbers.

4. Cross-platform gaps: If you’re trading BTC on Binance and DeFi tokens on Uniswap, keeping track of performance across platforms manually is a nightmare.

As a result, many traders are forced to use custom Excel sheets, wasting time and risking errors.

Why This Matters

Without accurate ROI tracking, everything becomes guesswork:

• AI tools struggle: AI models need clean data. If your ROI isn’t accurate, they can’t help optimize your strategies.Example: Imagine an AI suggesting “keep trading this strategy” when it’s actually losing money after fees.

• Incomplete decisions: Inaccurate data means you could sell a winning position too early—or worse, hold onto a losing one.Example: Selling a token that’s up 20%, only to realize later you lost 10% after fees and slippage.

• Risk management fails: Without clear performance data, you might misjudge how much to invest—or how much to hedge.Example: Thinking you’re up 50% and taking on more leverage, only to find out you’re barely breaking even.

Our Solution: AI-Enhanced ROI Tracking

At MC² Finance, we’ve built technology that fixes these issues with AI-powered, real-time position tracking.

Here’s how it works, in simple terms:

• Dynamic Updates: Your cost basis adjusts automatically.Example: Buy ETH at $1,500, sell some at $1,800, and rebuy at $1,700—our system updates in real-time, so you always see the true value of your position.

• Margin Integration: Tracks borrowed funds and deducts interest costs.Example: Borrow $10,000 for a leveraged trade, and the system calculates profits after deducting borrowing fees.

• Cross-Platform Compatibility: Works across exchanges and DeFi protocols.Example: Trade on Binance, Uniswap, and Curve simultaneously, and get a single, unified ROI report.

MC² Finance doesn’t just track, it creates a foundation for smarter trading decisions.

The Bigger Picture

This technology is the first step in connecting traditional finance with DeFi:

• Identifying winning strategies by creating the best analytical engine: By tracking ROI accurately, we can find the best-performing strategies in DeFi.Example: A yield farming strategy on Aave that consistently outperforms staking rewards.

• Crowdsourcing more strategies by simplifying trading execution: Multi Asset, cross chain, cross protocol intent based trading.Example: spot trades, liquidity provisioning, or yield farming….

• Bridging the $140T gap by creating ETPs for institutional investors: Once validated, these strategies can be packaged into regulated Exchange Traded Products (ETPs). Example: A Nasdaq-listed ETP that bundles strategies like AAVE staking, COMP lending, or tokenized real-world assets (RWAs).

The result: Traders get smarter tools to execute profitable strategies, and institutional investors access DeFi strategies effortlessly.

What’s Next in Q1?

• "Hey AI, give me tokens below $100m mcap, that has a lot of memecoin whales buying it in the last 24h, where the authenticity is in the top 90%" - with the best data, AI can work its magic. (expected February)

• "This trader has the same tokens as you, but makes 15% higher returns with lower risks - check out how" - peer review insights into your strategies - directly see what others do different. (expected January)

• "Buy this DeFi swing trading strategy directly via your bank - no need for a wallet" - Stock listed DeFi ETPs (expected H1 2025)

Try It Out!

👋 → Here’s how you can get involved:

1. Beta testing: Explore our AI-powered analytics, let us know where to improve

2. Schedule a personalized demo to learn how this works for your trading.

Want To Learn More?

👉 → Check out our blog: How to Calculate Profits in Crypto in 2025

Let’s redefine what’s possible in crypto trading!

Best regards,

Marine & Chris
Co-founders of MC² Finance